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Committee advances narrow fix to contractor recovery fund to help transition claimants
Summary
Senate Bill 565 would apply a higher claim cap retroactively to a small transition group caught by timing of a previously enacted cap increase; DPOR said the fund is solvent and estimated the cost to cover the affected claimants at about $123,000.
The Senate General Laws and Technology Committee voted to report Senate Bill 565, a narrowly tailored correction to the Contractor Transaction Recovery Fund that would ensure certain claimants are eligible for the increased payout cap.
Sen. Sturtevant told the committee the bill addresses a narrow group of transition claimants who filed verified claims on or after June 6, 2024 but had their claims finalized under the previous $20,000 cap before an increase to $30,000 took effect. "This does not create new eligibility, just equal treatment for this narrow transition group," Sturtevant said.
Miriam Hobal Heinrich testified she personally filed a claim and did not receive the higher cap because of timing; she said the change would be significant to affected individuals. Steve Kirschner, Director of Licensing at DPOR, said the fund balance is approximately $4,000,000, typical annual payouts are around $800,000, and DPOR estimates the cohort could include about 18 claimants with a total fiscal impact of about $123,000.
Committee members discussed precedents for retroactive relief and the limited size and cost of the request; the committee voted to report SB 565 to the next stage.
What—s next: SB 565 was reported by the committee and will be considered by the Finance Committee as appropriate for any fiscal implications.
